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CareTrust REIT Adds Skilled Nursing Facility

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CareTrust REIT Inc. has acquired Lakewest Rehabilitation & Skilled Care, a 118-bed skilled nursing facility located in Dallas. CareTrust leased the Lakewest property to Next Gen P, LLC, a well-regarded Texas-based skilled nursing operator.

“We have long admired Next Gen and its principals, and are elated to finally kick off our formal association with them,” said Mark Lamb, CareTrust’s Chief Investment Officer, in a prepared statement. “They fit CareTrust’s outcomes-based quality operator profile extremely well, and we anticipate that they will be a great partner and a growing relationship for us,” he added.

Sharlyn Threadgill, Next Gen’s managing principal, remarked, “We are excited to expand our portfolio by partnering with CareTrust. Their operator-focused investment approach was evident throughout our initial discussions and all the way to the close of this transaction.” She also expressed appreciation for the existing line staff at Lakewest. “We are grateful for the firm foundation of quality care they have established, and look forward to working with them to make it even better,” she added.

The total initial investment for Lakewest was approximately $10 million, inclusive of transaction costs. Initial annual cash rent will be approximately $900,000. The Next Gen master lease carries an initial term of fifteen years, with two five-year renewal options and CPI-based rent escalators. The property is subject to a long-term ground lease in favor of the Dallas Housing Authority. The acquisition was funded using cash on hand.